The cost of first-time buyer homes is falling, while family homes are seeing the biggest rises

25th June 2017

A new report reveals home-owners with children under eleven years old are twice as likely to move home as the average person

A recent report reveals asking house prices are continuing to rise across the UK, for the fifth consecutive month.

Following annual rises of three per cent, houses are now being listed for sale for a national average of £317,000.

This is less than half the London average of £650,000.

Family homes, classed as three- to four-bedroom terraces or semi-detached homes, are seeing the biggest rises nationwide – up 5.4 per cent on average compared with last year.

The research by Rightmove reveals that home-owners with children under eleven years old are twice as likely to move home as the average person .

“Demand is exceeding supply in many parts of the country and continues to push up the prices of newly-marketed homes. Spring is in the air and home movers are springing up the housing ladder,” says Rightmove director Miles Shipside.

“Those with the greatest motivation to move are often those with growing families, with their need for space or access to schools outweighing uncertainties that might cause others to delay their future housing plans.”

Meanwhile, there’s some good news for those trying to get on the ladder.

The average first-time buyer home – typically a two-bedroom house or flat, or smaller – is being put up for sale for an average of £193,000, 0.5 per cent less than they were this time last year.

“This is likely to be an influence from the rental sector,” says emoov founder Russell Quirk.

“The introduction of an additional three per cent penalty on second homes and the reduction in tax relief in the buy-to-let market has deterred would-be landlords to some extent. The competition is not as fierce in the current market climate.”

London’s first-time buyers, however, are still seeing prices rise by an average of 0.7 per cent.

“There’s less of a negative impact from the buy-to-let withdrawal in the capital,” says Shipside. “Plus, London’s first-time buyers often have the bank of mum and dad behind them, so sellers are not having to reduce their prices to meet limited first-time buyer funds in the same way as they are in other parts of the country.”